Kathmandu, Sept. 4: The progress in setting up large cement industries with foreign direct investment (FDI) has been sluggish.
Four large scale cement industries - Dangote, Hongshi-Shivam, Huaxin-Narayani and Reliance – have stalled the process of registering their company or establishing the plant, citing various reasons.
Dangote and Hongshi-Shivam have sought waiver on land ceiling.
“The government has agreed to provide them with 150 bighas of land, about 102 hectares, but they say the size of the land would be insufficient and have demanded 200 bighas,” chief executive officer of the Investment Board of Nepal (IBN) Maha Prasad Adhikari informed journalists at a press conference Sunday.
Adhikari informed that the government had been studying the matter.
The then Prime Minister Dr. Babu Ram Bhattarai had established the IBN about six years ago with the aim of facilitating the establishment of large industrial projects with foreign investment.
It has been facilitating industries in signing Project Development Agreements, registering companies and acquiring land, among others.
There has been delay in issuing limestone mining license to Dangote and Huaxin-Narayani while Hongshi-Shivam is facing delay in construction of transmission lines and access road.
Huaxin is still looking for land for its plant and mine.
Similarly, as there has been change in the management of Reliance due to its acquisition by another party, there are chances that the company might rethink about its investment policy in Nepal.
Except for Reliance, other companies have registered themselves in Nepal while only Hongshi has completed industry registration.
They altogether have pledged to bring an investment of about Rs. 146 billion in the country.
Dangote will invest 100 per cent, or Rs. 56 billion, in its cement plant with a capacity to produce 6,000 tons per day, which is to be established in Makwanpur district and will generate about 1,000 jobs.
About Rs. 36 billion will be invested in Hongshi-Shivam Cement where the Chinese company Hongshi will have a 70 per cent stake.
Hongshi-Shivam has selected its mine in Palpa and the plant will be located in Nawalparasi. It will produce 6,000 tons of cement per day and will also generate 1,000 jobs.
Likewise, Huaxin-Narayani and Reliance have pledged to invest Rs. 14 billion and Rs. 40 billion respectively which is cent percent of the total investment.
Huaxin-Narayani and Reliance will have plants with a capacity of producing 3,000 tons and 7,000 tons per day respectively, and will generate 350 jobs each.
These four industries will consume about 215 megawatts of electricity.
FDI approval was awarded to Dangote in 2013, Reliance in 2014 and Hongshi-Shivam and Huaxin-Narayani in 2015.
Four large scale cement industries - Dangote, Hongshi-Shivam, Huaxin-Narayani and Reliance – have stalled the process of registering their company or establishing the plant, citing various reasons.
Dangote and Hongshi-Shivam have sought waiver on land ceiling.
“The government has agreed to provide them with 150 bighas of land, about 102 hectares, but they say the size of the land would be insufficient and have demanded 200 bighas,” chief executive officer of the Investment Board of Nepal (IBN) Maha Prasad Adhikari informed journalists at a press conference Sunday.
Adhikari informed that the government had been studying the matter.
The then Prime Minister Dr. Babu Ram Bhattarai had established the IBN about six years ago with the aim of facilitating the establishment of large industrial projects with foreign investment.
It has been facilitating industries in signing Project Development Agreements, registering companies and acquiring land, among others.
There has been delay in issuing limestone mining license to Dangote and Huaxin-Narayani while Hongshi-Shivam is facing delay in construction of transmission lines and access road.
Huaxin is still looking for land for its plant and mine.
Similarly, as there has been change in the management of Reliance due to its acquisition by another party, there are chances that the company might rethink about its investment policy in Nepal.
Except for Reliance, other companies have registered themselves in Nepal while only Hongshi has completed industry registration.
They altogether have pledged to bring an investment of about Rs. 146 billion in the country.
Dangote will invest 100 per cent, or Rs. 56 billion, in its cement plant with a capacity to produce 6,000 tons per day, which is to be established in Makwanpur district and will generate about 1,000 jobs.
About Rs. 36 billion will be invested in Hongshi-Shivam Cement where the Chinese company Hongshi will have a 70 per cent stake.
Hongshi-Shivam has selected its mine in Palpa and the plant will be located in Nawalparasi. It will produce 6,000 tons of cement per day and will also generate 1,000 jobs.
Likewise, Huaxin-Narayani and Reliance have pledged to invest Rs. 14 billion and Rs. 40 billion respectively which is cent percent of the total investment.
Huaxin-Narayani and Reliance will have plants with a capacity of producing 3,000 tons and 7,000 tons per day respectively, and will generate 350 jobs each.
These four industries will consume about 215 megawatts of electricity.
FDI approval was awarded to Dangote in 2013, Reliance in 2014 and Hongshi-Shivam and Huaxin-Narayani in 2015.
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